Ontario electricity customers paid millions for wind in November

January 14, 2017

strongwindweather

The line of poetry “it’s an ill wind that blows nobody any good” was a reality in November for Ontario ratepayers. The IESO (Independent Electricity System Operator) finally released their November 2016 Monthly Market Report on Friday, January 13, 2017 and there was not much good news in it.

While net exports* were down compared to the same month in 2015, it wasn’t related to the amount of wind power generated and curtailed (estimates of the latter from Scott Luft); that exceeded November 2015 by about 152,000 megawatts (MWh) and clocked in at 1,363,000 MWh.  Generated and curtailed power exceeded Ontario’s net exports in 2015, representing 102.7% versus 72.9% the previous year.  One should suspect November 2016 also saw spilled hydro and steamed off nuclear, but at 102.7% of our net exports, it is obvious that power generation from wind was clearly not needed.

November 2016 was not the month with the highest combination of generated and curtailed wind, but rather the second highest. The highest, according to Scott’s estimates, was December 2016, but we will save that report for another day.

Exported power could have served half of Ontario

Net exports in November 2016 were equivalent to the power that approximately 150,000 “average”** Ontario households would use in a year, or to put it another way, was sufficient to supply 2.4 million of those same households for the whole month of November. That is slightly more than 50% of all Ontario households.

The net exports of 1,326,960 MWh in November 2016 cost Ontario ratepayers $169 million to generate and sold at an average price of $16.69 per/MWh, resulting in income of  $21.4 million.  What that means is, Ontario’s electricity ratepayers subsidized the sale, picking up the difference of $l47.4 million, along with another $30.8 million for the 254,000 MWh of curtailed wind.  Past and present Energy Ministers in the Wynne-led government would probably claim the deeply discounted sale price for those exported MWh was actually a “profit” but most ratepayers recognize that claim to be untrue.

Cancel the contracts

Current Energy Minister Glenn Thibeault has a chance to make his mark by halting all planned acquisition of wind power generation in LRP I and LRP II, as well as cancelling any wind power projects that have not commenced construction, or which have passed their critical “operational” dates.

Time to treat industrial-scale wind power development as that “ill wind”!

© Parker Gallant

*Net Exports are total exports less total imports.

**The Ontario Energy Board claims the “average” Ontario household consumes 9 MWh annually, or 9,000 kilowatts.

 

 

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Dancing in the streets when Ontario’s wind power “tyranny” ends?

My article in the Financial Post, December 15, 2016.

[Photo: Getty Images]

The editor of the magazine, North American Windpower, recently marked the demise of Ontario’s wind industry. His article was titled “Eulogizing Ontario’s Wind Industry.” Apparently the eulogy was a result of Ontario Energy Minister Glenn Thibeault’s announcement of Sept. 27 that he was “suspending” the acquisition of 1,000 MW (megawatts) of renewable energy under the previously announced LRP ll (Large Renewable Procurement).

Thibeault explained that “IESO (Independent Electricity System Operator) had advised that Ontario had a robust supply of electricity over the coming decade to meet projected demand.” Thibeault didn’t express surprise at this sudden turn of events or explain what led to the realization. To put some context around the suspension, only a few months earlier former Energy Minister Bob Chiarelli had issued the directive to acquire the 1,000 MW that Thibeault shortly after “suspended.”

The Windpower article opens with: “Ladies and gentlemen, we are gathered here today to pay our respects to Ontario’s utility-scale wind industry, which has passed away from unnatural causes (a lack of government support).”

If Ontario’s wind industry had truly passed away, the celebrations among hundreds of thousands of Ontario ratepayers would have rivaled the scale of celebrations exhibited in Florida by Cuban exiles after hearing that Castro died. As it is, Ontarians are hardly celebrating. We will be forced to live with and among industrial wind turbines for at least the next 20 years. The “government support” alluded to in the eulogy isn’t dead. It continues to get pulled from the pockets of all Ontario ratepayers and has caused undue suffering.

The wind industry rushed to Ontario to enjoy the largesse of government support via a government program that granted above-market payments for intermittent and unreliable power. Industrial wind turbines have so driven up electricity prices that Ontario now suffers the highest residential rates in Canada and the fastest growing rates in North America. The Ontario Association of Food Banks in its recent 2016 “Hunger Report” noted: “Since 2006, hydro rates have increased at a rate of 3.5 times inflation for peak hours, and at a rate of eight times inflation for off-peak hours. Households across Ontario are finding it hard to keep up with these expenses, as exemplified by the $172.5 million in outstanding hydro bills, or the 60,000 homes that were disconnected last year for failing to pay.”

Beyond that, the cost of energy affects businesses and, as noted by the Canadian Federation of Independent Businesses, “fuel, energy costs” ranks for their Ontario members as the second-highest “major cost constraint” behind “tax, regulatory costs.”

Until the day we actually see Ontario electricity consumers dancing in the streets one day, the eulogy for this province’s wind-power tyranny is unfortunately premature.